Akorn Can't Duck Investor Suits Over Collapsed $4.3B Merger

Law360 (February 6, 2020, 3:09 PM EST) -- Akorn Inc. must face two securities fraud suits over its $4.3 billion merger that imploded after regulatory violations came to light, an Illinois federal judge ruled Wednesday, finding that the generic drug-maker plausibly deceived shareholders in its financial filings.

U.S. District Judge Matthew F. Kennelly rejected Akorn's bid to dismiss two similar suits accusing it of hiding data integrity problems with its generic drug testing from the U.S. Food and Drug Administration, which later tanked Akorn's acquisition by Fresenius Kabi AG.

The judge said Akorn's noncompliance with FDA standards was a "known trend" because employees had raised the issue with management...

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